mic.20170152.pdf (1.03 MB)
A generalized model of advertised sales
journal contribution
posted on 2020-05-12, 12:39 authored by Sandro Shelegia, Christopher WilsonChristopher WilsonTo better understand temporary price reductions or ‘sales’, this paper presents a
generalized ‘clearinghouse’ framework of advertised sales and explores some applications. By viewing the firms as competing in utility and amending the conventional
tie-break rule, we allow for multiple dimensions of firm heterogeneity in complex
market environments. Moreover, we i) provide original insights into the number
and types of firms that use sales, ii) offer new results on how firm heterogeneity
affects market outcomes, iii) extend a common empirical ‘cleaning’ procedure, and
iv) analyze a family of activities in sales markets, including persuasive advertising
and obfuscation.
Funding
Spanish Ministry of Economy and Competitiveness through the Severo Ochoa Programme for Centres of Excellence in R&D SEV-2015-0563
RYC-2016-20307
ECO2017- 89240-P
History
School
- Business and Economics
Department
- Economics
Published in
American Economic Journal: MicroeconomicsVolume
13Issue
1Pages
195 - 223Publisher
American Economic AssociationVersion
- VoR (Version of Record)
Rights holder
Copyright © 2020 AEAPublisher statement
The author has the right to republish, post on servers, redistribute to lists and use any component of this work in other works. For others to do so requires prior specific permission and/or a fee. Permissions may be requested from the American Economic Association Administrative Office.Acceptance date
2020-05-04Publication date
2021-02-01ISSN
1945-7669eISSN
1945-7685Publisher version
Language
- en